Posts by tag: interest

How does an educational loan work?

An educational loan is a type of financial aid used to help students pay for college tuition and related expenses. Educational loans are typically provided by banks, credit unions, and other financial institutions, and can be either federal or private. Federal loans have lower interest rates and more flexible repayment options than private loans, but they also require the borrower to meet certain eligibility criteria. Private loans may have higher interest rates, but they also have more flexible repayment options. All educational loans require the borrower to complete a Free Application for Federal Student Aid (FAFSA) and to maintain satisfactory academic progress.